NET-PROFITS INTEREST

By SovConn | May 31, 2013

net-profits interest.Oil & gas. A share of production free of the costs of production. • Like a royalty, the interest is expressed as a fraction or a percentage of production. But unlike a royalty, it is payable only if there is a net profit, and the costs that are used to calculate the net profit depend on what is negotiated.

[Blacks Law 8th]

Posted in Law Dictionary Definitions